If the inflation rate was 3.40% and the nominal interest rate was 5.60% over the last year, what was the real rate of interest over the last year? disregard cross-product terms; that is, if averaging is required, use the arithmetic average. round intermediate calculations to four decimal places.

2.1276%

Explanation:

1.056/1.034 -1 = 0,021276595744681  rounding to 4 decimal places:

2.1277%

The reasoning behind this formula is the following:

there is a rate that generate the combine effect of the nominal and the inflation rate

Principal (1+real rate)  = Principal x (1+nominal) / (1+ inflation)

removing the principal for clearence:

1+real rate =(1+nominal) x (1+ inflation)

real rate = (1+nominal) x (1+ inflation)  - 1

these are the four factors that influence enterpreneurship development

1. economic development

2. culture

3.technological development

4. education

the amount of money you earn by working is your income.

the percentage of people actively looking for a job is called unemployment.